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How Australia's Economy Got Rich and Is Getting Dumber | Economy of Australia | Econ
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- Опубліковано 12 лип 2024
- Australia is known for its prosperous economy, but beneath the surface, there are significant challenges and risks. 🇦🇺💼 It has a unique economy, shaped by its geographic isolation, reliance on natural resources, and booming housing market. 🌍⛏️🏡 Australia's population growth, driven by immigration, has fueled economic activity, and the mining boom has transformed the country. 📈👷♂️ However, despite being the world's 13th largest economy, Australia's economic complexity has declined significantly. 📉🔍 In comparison to South Korea's transformation into a high-tech powerhouse, there is a clear need for a serious vision for Australia's future to ensure long-term competitiveness and stability. 🚀🔧🔮 #australia #australiaeconomy #economy #australiavscanada #geopolitics
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You are awesome :)
hi! awesome content creator!
just a quick suggestion: still listening to the video but the background music is a bit too loud.. maybe make it a bit softer so the narration doesn't have to compete with the music in our ears 🙈😇
loving the content, thank you!! 🇦🇺🪃
You call us dumb again... see what happens big boy... ESHAY MY BAH!!!! 👊👊👊💥💥💥
has the OP heard of the term qualified idiot? I am actually surprised he found Australia on the map
You Are Indian Brother UA-camr Or British Or USA
7:05 Why is Canada used to depict Aus?
We are overly fixated on the idea that the economy will collapse. In reality, the economy cycles and always recovers, so I don't really care what the forecasts are; all I want is to increase my portfolio. I've read that some people are making enormous profits in spite of the recession. Do you have any advice on how they manage this?
I think it's the professionals and those who use their services that are really pulling in the big money right now. There are really advisors that can help you achieve very consistent growth. I have a friend who pulled in more than $194k profit within three months. So you just have to make some research and get one who fits your fin-goal.
The market will always recover. The goal is to find quality stocks with long term potential. It's hard for the average Joe to do this, because it involves following a lot of industry news, following up with earnings, etc. It's easier to invest through an advisor who knows how stuff works, and make rocket returns.
Investing in quality stocks with long-term potential is a good strategy, but it can be challenging for the average person to do this on their own. Keeping up with industry news and earnings can be time-consuming and difficult. That's why it's easier to work with an advisor who can help you make informed decisions and potentially achieve high returns.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.
Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $200k portfolio is down by approximately 20 %, any recommendations to scale up my returns on investment
Nobody knows anything You need to create your own process, manage risk and stick to the plan, through thick or thin While also continuously learning from mistakes and improving.
Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Wish the same could be said about the American economy, more and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?
People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?
truth is that gold serves as an inflation hedge in the long run, but not profitable in the short run. only thing you can predict is a strong effort of wealth transfer from the people to the powerful. luckily some folks find solution in financial advisors
Sure, investing is plain-sailing with the aid of an invt-specialist, thus I've always delegated my excesses ever since the rona-outbreak in January 2020 using a shrewd advisor, and my investments have compounded by at least 300%, summing up $820k ROI as of today.
this is incredible! how can I vet your advisor if you please? definitely would love to make money from the market too, but a complete newb..
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
"Australia is rich and dumb and getting dumber" as an aussie i can 100% confirm this is true.
speak for yourself! not for others!
Bloody oath. Stupid and insecure. Typically anti-intellectual and pride ourselves on avoiding any depth of understanding beyond tools, 4WDs, jetskis and caravans. Meanwhile anyone who goes to a private school knows how to weaponise this stupidity and willfull ignorance against the dumbdumbs, in order to have them vote for policies that further marginalise themselves.
Ask a tradie or a y other working class person what socialism is and means and you'll begin to understand the grip and control of the wealthy elite over the minds of the commoners
What's socialism? I vote for Gina Rinehart 😂 I is know what stuff is
@@Ragnar6000 not plenty of others have liked that comment, including myself. Put the same royalties as Qatar on leg exports and have an extra $74 billion per year. Support PIB and have an extra $21 billion per year. Aust is forecasted to have the next 40 years of deficits. Nothing intelligent about that. A super industry worth $3.5 trillion and cannot invest considerably in Australia. There is a land shortage. Take 1% of super funds (about $35 billion) and develop land lots for cost price. Massively reduce land prices around Australia and allow Australians to own their own homes again, rather than losing out to immigrants.
@@sunrisesunset8843 100% correct, Australia could of been far more richer!
I think we are too obsessed about the economy crashing. In the right sense, the economy never crashes. It just undergoes cycles, and almost always recovers. So I really don't care what the predictions are. I just want to grow my portfolio. I read that people are pulling in massive profits despite the downturn. Any tips on how they do it?
I think it's the professionals and those who use their services that are really pulling in the big money right now. There are really advisors that can help you achieve very consistent growth. I have a friend who pulled in more than $194k profit within three months. So you just have to make some research and get one who fits your fin-goal.
The market will always recover. The goal is to find quality stocks with long term potential. It's hard for the average Joe to do this, because it involves following a lot of industry news, following up with earnings, etc. It's easier to invest through an advisor who knows how stuff works, and make rocket returns.
Investing in quality stocks with long-term potential is a good strategy, but it can be challenging for the average person to do this on their own. Keeping up with industry news and earnings can be time-consuming and difficult. That's why it's easier to work with an advisor who can help you make informed decisions and potentially achieve high returns.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Annette Marie HoltAnnette Marie Holt is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Australia has way too many monopolies. They are stifling competition, innovation and increasing the over a cost of living for all Australians.
Same as Canada
And 'Merika's almost there too. Gotta love mergers and private equity holding groups.
@@Daniel-ef7nk And New Zealand
Australia is overly bureaucratic with high costs at every step of the process of establishing and running business, generally poor work ethic from the populace, conservative and afraid of risk, change and innovation, slow and inefficient. All this makes it uncompetitive. However, it is reliable and stable economically and socially.
@@BLC72no better way to put it
As an American living in Australia the past 10 years, I would say the lack of innovation etc isn't so much Australia being 'dumb', but more that there is just no economic incentive. Australia is a country of abundance where mediocrity thrives - people can live a very comfortable life here without being particularly exceptional, so why push yourself? Whereas in the US you really need to out-work and out-hustle others to have any chance of a half-decent life.
@@neznet that’s not true …you can get along by being mediocre in the US too. But if you’re skilled and capable, you get paid better in the US. In Australia if you’re better than the others then they’ll destroy you instead of rewarding you. For context, I’m an Aussie living in the US 😄
Investment into housing in Australia has also taken priority over investment into business. Housing has historically provided far better and reliable returns.
As a New Zealander that moved here 20 years ago Australia is a country of Mediocrity. The amount of times my peers have flouted the "She'll be right" "If it ain't broke don't fix it" Mantra really bottlenecks innovation. People here are comfortable and get paid quite well hence there's no drive such as countries like Singapore, The US, Vietnam, Nigeria and other developing countries are spearheading breakthrough innovations.
Would you say mediocrity is caused by high wages for basic labour?
@@dumdumbrown4225100% mate
I’ve got masters in Mech Engineering and honestly it feels like it’s just diminishing returns. You can literally get paid 120k as a stop sign holder. Why bother with all that hard sciency stuff when you can get 120k for twisting a fucking pole.
Australia is a very basic economy that sells rocks for it’s wealth, nothing more. Thinking about getting an E3 Visa and moving to the US. Pay and opportunities are just incomparable. And yeah sounds like you know the tall poppy thing only too well.
I am a mechanical engineer working in manufacturing in Aus for last 20 years , can count at least 100 factories gone down because of red tape, unions, ultra high energy prices. We are dumb to sell coal to china so that they can run factories on cheap and we closed down our coal power plants which lead to manufacturing decline....
You’ve hit the nail on the head. Unfortunately we’ve had 30 years of declining interest rates, high immigration, a real estate and mining boom that has juiced our economy and left an entire generation thinking it’s just normal to get paid a six-figure salary while sitting around and basically doing FA. It’s going to be an almighty reality check for these people when the music stops.
@@joestjack Well looking at last 4 yrs I doubt the critical thinking of all Aussies. The way all lined up like sheep to get jabbed with poison. West in general has lost the ability to THINK. Its lost cause. People let it happen cause avg man doesnt care till his job is thretened. No one carea about who is in Canberra. So we are puppets of currupt system run by Elites of WEF. They wanna see a degenerate Australia. Thats what we have now. Footy beer pubs .....no innovation...just dig holes send to China....dumb nation
I'm a mechatronics grad and tbh I'm thinking of passing off to the USA because jibs are scarce and the only people really hiring are consulting companies who do sweet FA and get played by the gov.
Unions had nothing to do with Australian manufacturing over the last 20 years. Manufacturing unions were already decimated decades earlier. Competition from ultra low cost countries minimal import tariffs, high energy costs and regulation are much bigger factors.
@@Boababa-fn3mr I’m not so sure about that. From my house in Rockingham I can see the Alcoa Kwinana refinery which is currently closing down and the old BP refinery site which closed a few years ago. Both had strong aggressive unions who went on strike year after year because they thought they deserved higher pay, they wrapped the business in red tape and basically just took the piss. The people that used to work there were some of the laziest people I know yet thought the world owed them a six figure salary.
It’s impossible this wasn’t a factor in the company’s lack of profitability and subsequent decision to close.
So I definitely wouldn’t suggest that unions were the only reason we lost our manufacturing but they are certainly a factor and your statement that they had nothing to do with it I don’t think is correct.
5:45 - "Australia has a diversified economy"
9:19 - "Australia's economy lacks both diversification & sophistication"
diversified economy as in Australia's exports aren't focused on a single area. but lack diversification and sophistication because australia isn't doing anything to improve the quality of their products either for themselves or exports
Well atleast we don’t have school shootings
definitely noticed that. the script wasnt coherent. maybe written at different times or by different people. to make a gaff like that youd possibly even have parts that are plagiarised or AI generated.
They're both true, just in different matters.
I noticed this too, AI generated trash
I disagree with some statements in the first half of this video, but the second half is 100% correct. Australia is a wealthy country, mainly due to digging stuff out of the ground that we cannot even convert to a finished product; Australia is a highly educated country (lots of people with University degrees); but Australia is technologically almost a third world nation. We make almost no tech, we don't carry scientific research though to products we can sell, we import almost everything more complex than a tomato or cardboard box from Asia.
The problem is that it is possibly to live an affluent and comfortable life in Australia after getting an easy degree (ie little science or maths), such as law, economics or commerce. You don't even need a degree to get rich; just become a tradesmen or a real estate agent. 80% of the Australian economy is housing. To get rich, you borrow as much money as you can and purchase as many investment products as possible. Why go out of your way to set up a high tech factory or do complicated and expensive medical research?
Australia is heaven for rent-seeking capitalist. And hell for those of us who aren't.
Law and Economics are not easy degrees in the slightest lol. 'Easy degree' would be something like business or communications.
As an investment enthusiast, I often wonder how top level investors are able to become millionaires off investing. I do have a significant amount of capital that is required to start up but I have no idea what strategies and direction I need to approach to help me make over $400k like some people are this season...
It is very easy to buy in on trending stocks but the problem is knowing when to sell or hold, which is why a coach is important. I've been in touch with one for about a year now and although I was initially skeptical about it, I will say I've made more progress within a year generating 6figure profit
I believe the safest approach is to diversify investments especially under professional; guide. You can mitigate the effects of a market meltdown by diversifying their investments across different asset classes such as stocks, etfs etc It is important to seek the advice of an expert.
That makes sense. Unlike us, you seem to have the market figured out. Who’s your fiduciary?
Dustin Dwain King is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for the tip. It was easy to find your coach. I did my due diligence before scheduling a phone call with him, and he seems highly proficient based on his résumé.
I am a born and bred Australian. Excellent video. A number of points well made, particularly around the selling of raw materials rather than doing some processing here and hence value-adding to create industries and jobs, and then selling that processed stuff for much more (ie dumb and getting dumber).
You missed a couple of points. By and large Australia is virtually giving away its resources. Our governments give overseas (and Australian) companies licences to mine, but then allow those companies to pay only pitiful royalties back into Australian coffers. For the amount of natural resources we have and the relatively low population we should be by far the richest per capita nation in the world. Yet we have homeless people and many people living below the poverty line. This is all because our govts kowtow to rich industrialists and give our wealth away to them in return for their personal and political support.
Another big miss in your video is around housing. We have a tax rort called 'negative gearing'. It is a shocking and unethical tax evasion scheme that encourages rich people to keep on buying property, which has now made it virtually impossible for regular a Australian to buy a home. It is disgraceful. Yet again, our govts won't end the scheme because they kowtow to the demands of the rich who donate to their political parties. It is corruption writ large.
There is a lot good in this country compared to many others, but like most western economies, our wealth is rapidly being concentrated into the hands of the rich few to the massive detriment of the majority average person who is struggling terribly with costs of living and housing. It is immoral what is going on here, and completely preventable if our govts weren't so weak and corrupt.
We could have the greatest and fairest and most 'looking after everyone' country in the world, but our spineless politicians over decades have buckled to the rich and screwed over the rest of us. Deplorable
Bang on! Imagine what Australia could have become if it had created a sovereign fund, like Norway...
Spot on!
thank you for your drill down comment Peter, about Australia, " The Lucky Country" and the reasons why we our becoming dummer - lack of innovation and home based industrial Industries.
Don't forget the capital gains tax discount - that's probably the bigger incentive to property investors. Australian politicians micromanage too much, too. Tax laws disincentivize efficient use of homeowner's spare rooms.
Don't forget the laziness of using mass immigration to keep GDP up, too (whilst suppressing per capita GDP).
@@saimoncole yes, i agree with all your excellent points, thank you!
Australia is run more like a mining project than a country!
Banks, consultants, big corps. mining giants... run this project (via bought out politicians) with profit optimization as their only driver.
This includes minimizing operational and maintenance expenses, aka public services, infrastructure, r&d, education, health, etc...while maximizing income from taxes, export of raw materials, and import of cheap labour....
Total disregard to the current and future welfare of the ordinary citizen and the environment.
Totally fair assessment
yes!
Well duh. That's why the westerners ethnically cleansed the natives.
Well, yeah.
Aside from mining, nothing else matters in Straya anymore. The population serves zero purpose in the global economy beyond supporting the mineral resources sector.
Also there’s a small casino on most street corners
Sadly the colder version of Australia - Canada, is becoming poorer and dumber.
It seems to be the curse of a lot of developed countries. NZ, France, Sweden, Spain, US all and more in varying degrees.
@@adityagupta7525 Canada is a great example of where Australia is headed 😄 at least Canada is next to the US. Australia is next to …NZ?!
@@trails3597 economically US is nowhere in club of other. It's companies, industries and markets are exceptional. Inequality is there no sure but from a country perspective US is in a different league.
@@siddharthgoyal4008no healthcare.😂
@@CountingStars333this is irrelevant to a company’s economic performance.
For all of the crap it gets, the us economy is extremely robust compared to the rest of the world
Fantastic video! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??
Same here, My portfolio has been going down the drain while I try trading,l just don't know what I do wrong. .
Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience.
I think l'm blessed if not I wouldn't have met someone who is as spectacular as expert mrs Janet..
Highly recommended🙌
Wow, I'm surprised to see Janet mentioned here as well. I didn't know she had been kind to so many people
I'm also a huge beneficiary of her..
I thought myself and my family were
the only ones enjoying Janet
trade benefits
A extremely rich country in natural resources.... Sounds like the middle east with their oil reserves.
But Australia has been governed so badly, and politicians are so short sighted that unfortunately the general public is now the biggest losers.
Australia should have free education, free healthcare, childcare, elder care etc etc etc.
No tolls on any roads, houses should be affordable and we should have very low income tax.
But none of this is true because we haven't managed our natural resources properly
So many whingets in oz go travel see how shit europe and divided states are then apologise for being a whinger livin in by far best country in the world
100% right but we sold of all our assets and don't profit .we given it all for free. How dumb fked are our politicians
Hard to thrive like the saudis when if we were to go solo America would just invade us and take it for themselves lol
@@Ryan95ishere that's a very good point. But do you see the USA invading an English speaking Christian country?
Yes all of that is caused by mining companies basically running our government, alongside other big business. We see next to no tax for all the profits these companies make off our natural resources. Our government has to be the most ineffective in the western world at helping its constituents. We are USA 2.0
Houses and holes. That’s the complexity of the Australian economy.
that's what i always say too aus economy is a housing ponzi scheme with a mining side hustle
You forgot "Hoes"🤣
What about agriculture?
@@oliversissonphone6143 Western Australia is the largest producer of carrots in the country!😁😁
Don't forget gambling, so much gambling.
As an Aussie in my 20s trying to figure out my professional career, I don't see much of a future here. We export a lot of raw goods and accept many skilled immigrants, leaving a lot of Australians without opportunities. I studied applied physics but our research sector is critically underfunded, and if we had a bigger manufacturing industry I could at least look for interesting work there. I'd love to be working in green energy but that gets suppressed for obvious reasons. It seems better to just resign myself to something basic to pay the bills, but I'd really prefer to be doing highly innovative work and earning enough to actually afford a home. Our economy seems absolutely rigged against poorer, younger and - rather surprisingly - highly educated Australians.
And don't think that our government isn't corrupt, we give away natural gas to overseas companies for free and encourage the rich to speculate on housing. Foreign bribery is a massive issue right now.
Yup. You're not alone. It's also great having to pay out our university debts before you can even be considered for a home loan - which could potentially crash in value.
oh come on. Many Anglo-australian kids only want to have fun and go for the trades, most of the local students in the serious careers in Australian universities are children of immigrants. My son went to an expensive private school, most of his schoolmates ended up being tradies or sport related 'professionals' such as physiotherapists, sport movement specialists, etc and be at the beach at 3pm (very important). Stop complaining about skilled immigration, this is the sector who does the heavy lifting in the workforce.
@@muchachopicaronfalse, there is a massive shortage of tradesmen, and skilled immigration is unproductive as hell
Straya is going down and average folk in future generations are gonna find the buy in cost just isn't worth the reward in the end. Start looking elsewhere.
@@Boababa-fn3mr I meant real skilled migration not taxidrivers from Mumbai with pseudo-engineering degrees. I work in the mining sector in Perth, most of the brains behind the mega-projects are foreign educated and very skilled. Even overseas projects are engineered from Perth these days bringing hard currency to Australia in fees. You can fix taps yourself if you can’t find a plumber!
My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Deborah Lynn Dilling is the licensed advisor I use.Just research the name. You'd find necessary details to work with to set up an appointment
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Your understanding of the term "The Lucky Country" is wrong. It is a quote by Donald Horne to explain that Australia's economy seems to keep succeeding through decisions that would sink the economy of other countries. From his book: "Australia is a lucky country run mainly by second rate people who share its luck. It lives on other people's ideas, and, although its ordinary people are adaptable, most of its leaders (in all fields) so lack curiosity about the events that surround them that they are often taken by surprise."
Also, Australia managed to survive the GFC not because of the mining boom, but because of economic decisions by the PM & Treasurer of the time, including borrowing from China to keep spending going.
Correct about the Lucky Country. The decision by Rudd during the GFC suggests some of the leaders are not so mediocre, but that the same decision was taken during the pandemic instead of running a UBI experiment or doing what the Swedes did confirms Horne's concerns.
Rudds Generic wasteful QE would of just sunk the economy eventually without the Mining Boom and former savings.
unfortunately the ordinary people are just as uncurious as its leaders
Errrr as a 38yo Aussie I'm 5 minutes in and REALLY scratching my head. So much of this isn't true. We get so rorted by the resources companies who pay so little in taxes back to the Australian people.
We're not all rich, but definitely agree with the dumb and getting dumber!
Individuals aren't all rich but the overall Australian economy is.
Even received minimum wages in Australia, that was higher than most of the countries.
a lot of the resource companies are run by australian people.... ie gina
We aren't wealthy, we just raised housing prices to unfathomable levels. And we have no true wealth generating assets other than homes.
People get rich in Australia through two means, hoarding housing or gambling.
Thank gvrt for inviting couple of thousand millionaires from overseas, triggering the biggest ponzi scheme in Australian history 😂
Well minimum wages in Australia still among the highest in the world, many innovative countries get lower paid compare to Australia. This is a question mark so Australian describe as rich and dumb.
Save more than you earn
This is gonna end badly.
In Australia, many tradies do much better than experienced professionals. There is no incentive for people to get higher qualifications. You can’t have a sophisticated economy when you operate like that.
Sad truth. Not that trades aren’t important, but rather that highly skilled professionals get paid so poorly. Why bother doing things that truly push the nation into the 21st century when you can make so much more on the tools.
@@teamtoken What makes you think tradies aren't more important and aren't skilled professionals? Do something useful and you might get more
@jaiacosta6025 such a bs comment. Try being useful in society, or fix your own window.
@futureoutfit Do you think a plumber and a rocket scientist are equally important? Both create same amount of wealth, and jobs for fellow citizens?
As a tradesman I think we are generally underpaid. The only ones who earn ok money do something extra like overtime, have their own business, specialise in something, 2 jobs etc
As an Australian I cannot fault the logic behind this commentary and overview of our country. Additionally, as a member of a team that has developed a new disruptive lifesaving technology that is being manufactured in-country, I, along with others in our team have been staggered by the ignorance and lack of support received by both governments and institutions thereby making our project far more difficult by comparison to other progressive thinking nations.
Just go to America. Loads of cash and boundless opportunities.
The government is owned by foreign interests
Can you please elaborate? What issues did you face?
@@johnhaines8752 I posted a reply to you, but it's gone. I criticised the government. I wonder who would censor my comments
What is it? Is there ways for people to invest?
This is the same thing that is happening in Canada. Rich in resources dumb in Economy which is why both countries have speculative real estate bubbles.
@@ngoctruongpaulnguyen6503 let’s not leave NZ out of the Dumb Club 😄
Perhaps we shouldn't ignore the fact our housing prices are high because a lot of people also want to move here to live, because it's a better place to live than most of the world.
@@tsubadaikhan6332 High immigration is only one of many factors that has resulted overpriced housing here.
@@tsubadaikhan6332 we're definitely not ignoring that fact, it's not just the demand side but the supply side as well. My point stands that for sustained economic growth, relying on real estate property values as a retirement fund is not ideal.
@@lindsaysmith8119The demand side coming from extremely high immigration levels that aren’t sustainable is the biggest factor. If you looked at 2020 and early 2021, the rental and housing costs decreased due to the lockdowns which reduced immigration.
I came to Australia back in 1995 , woked hard , had some deposite brought from oversise , bought my first house in year 2001 , for $198.000 . my weekly wages was about $650 . Today 25/07 /24 , my weekly wages is around $880 .same houst that I bought it's worth around $1.1 Million .
Australia was great , not anymore .
It's crap on every level, the worst mistake of my life was moving here. I hate the effing place, it really is dumb and dumber world
@@neilblackburn6869 I totally understand you champ . I've been here since 1995 , never felf like home and never will .but because my children were born here , and they didn't want to go any other country , I got stucked like you .
the country is full of idiots , and racist bastards .
@@neilblackburn6869you can always move elsewhere.
"but muh 18% interest rates!!!!! sure, the house only cost 4x my salary but it was still hard!!!!!!"
Australia is NO LONGER the lucky country I can tell you that. When my parents and I arrived in the 90's it was, despite unemployment being 'high' it was the lucky country. Fuel - 40c per litre, Housing around 60k, full trolley of shopping
Why would the government care to think about the housing, infrastructure, and innovation or even expanding to the outer the city when you can put tax on cigarettes and alcohol. Who made cigarettes become underground for the black-market? $50 bucks for a pack of 25's and they're telling us that they are doing for us. What a joke!
If they care about our health then maybe put some incentives on fruit and veg. Soon the alcoho bizzo will bet burnt down too!
How are people supposed to own their own land? Youth crime is getting out of hand, only if these kids know how crime works overseas.
Rich and Dumb, yes!
Soon it will be Broken and and clueless.
Purchasing power hasn't kept up at all for average folk. They're lucky to have received 2% nominal pay rises per year, in the face of much higher inflation, especially in housing.
@@Boababa-fn3mrbut prices of cars, electronics and white goods have fallen dramatically compared to wages over the years.
@@RomanGolubev_A New tech should be deflationary, so they should have fallen, but they're not the biggest costs in our lives. But cars?
00:07 Australia's economy is rich due to natural resources
02:10 China's demand for raw materials fueled Australia's iron ore exports boom.
04:05 Australia's economy grew due to migration and resource management
06:28 Australia's economic growth is fueled by immigration (asians mainly then europeans)
08:31 Australia's economy is rich but lacking in diversification and sophistication
10:39 Australia's low productivity growth is hindering its economy.
12:47 Rapid urbanization in Australia strains housing affordability.
14:46 Australia's economy heavily relies on housing and resource extraction.
Crafted by Merlin AI?
Great summary.
So what should be done to capitalise on these to make Australia able to perform like SoKor, Japan or S'pore? Looks like China is Australia's quick cash cow (or cash panda?) which cannot be ignored. The elected persons to lead the nation must emphasise more on nation building than on politicking or self-enrichment. Bipartisan efforts, perhaps?
Australia rode on the back of China and Asian immigration but shuns Asians as backwatered and poverty, treats immigrants like second class when the economy is strong. Now with inflation and weakening economy, Australia calls out for its government to give them money to maintain their expensive lifestyle but refuses to work for menial dollars and blames Asian immigration for taking up all their remaining houses (thereby putting up rent and property prices). An island of mediocrity
Aussie who has owned and run businesses here, Japan and Thailand as well as worked in China and South Korea. Based on that experience, I’ll never run another in Australia, … the red tape here is unbelievable and the tax/endless government charges out of control. It’s simply not worth it, easier to do it elsewhere.
Same here… closed up, left the country and started my next company OS. Not worth it in Aus
Same here too.
Asia is far easier .
Harder to run business in Australia than Japan?
That's sad to here
Hear
As an Aussie this is extremely well researched. Maybe don’t agree 100% on every statement but you’re pretty damn close overall.
FYI regarding builders going bankrupt - the issue is actually in Australia they do fixed price contacts, so when the inflation spike hit, builders had the choice to either do the project at a loss or go bankrupt. They need to change to laws to allow for price ratcheting.
Why can’t we build more homes? #1 is absolutely nimbyism and cultural. If you live in an apartment, like people will think you’re poor and “how unfortunate for you.” This is a cultural problem. And classic, every nice neighbourhood in Sydney they don’t wanna ruin the community feel or whatever it’s actually very perverse. My folks are in this category.
The 2nd bit is also cultural but skilled tradespeople are looked down upon in our society. Despite the fact young tradies are earning mega bux > 100k when the average uni grad is making like 70k (with student debt). Every kid gets drilled into them go to uni, and guess what, now we have a bazillion useless commerce grads and no skilled tradies. Also people don’t wanna study stem.
I am the only person I know who became a software developer (never met a developer in Australia outside a professional context like at my rugby club or in a bar or whatever) and I moved to USA lol way better opportunities
Excellent insights, and cultural stigma of the trades is very strong in the US as well.
Alongside fixed price contracts, considering that so many construction companies got washed out in 2021 and 2022, do you feel that the government response to the pandemic had an impact on the construction companies?
@@iramunn9611 I am an immigrant here in the US and have lived in Canada and Denmark so I am by no means anti migration but the issue was compounded by the fact when all these new housing starts got canned, they also accelerated immigration to catch up for the lack of it during COVID and the supply and demand equation just got so fucked up. No new housing but 100s of 1000s who are expecting to live somewhere. It’s just poor policy on multiple levels.
An idea would be to target the skilled migration specifically towards, I dunno, people who work in construction?
What also does not help (at least in NSW) is they allowed the construction industry to self regulate for a while so a number of very low quality apartment buildings went up and later on these building became legally uninhabitable due to structural faults (opal tower, mascot tower etc) and all the apartment owners got left holding the bag. I think there was a warranty period but it was short. This has scared people off of buying an apartment and having a stronger preference for existing stock.
So it’s a confluence of issues
On point re: the NIMBYism. But i would also add housing and strata law on that. There are many people who are willing to live in apartments, though not by first choice over houses, it’s the basic rules of not allowing pets to live in apartments, not allowing to wash your car on common driveway because there’s none provided, not allowing to party after 10pm, not allowing to install a door on your balcony without strata’s approval. Australia has become the land of nanny states we might as well give ourselves the moniker China-lite and install CCTVs at every road intersection. Look at Sydney, it’s become a ghost town due to the lock-out law because of a few incidents. Yes it was unfortunate and sad but you can’t make everyone suffer coz of a few. And now they want to fine you if you don’t wear your seatbelt properly. If people don’t want to cherish their life, then let them. They need to be responsible for themselves and let them suffer the consequences if they don’t. Govt should stop trying to be “we know better and it’s for your own good”. Rants over. Thanks for listening.
I don't think trades people are being looked just because they do trade, it has more to do with they are usually associated gambling and drinking.
100k+ but without super, annual leaves, sick leaves etc is practically the same as 70k
"Australia is a lucky country run mainly by second rate people who share its luck. It lives on other people's ideas, and, although its ordinary people are adaptable, most of its leaders (in all fields) so lack curiosity about the events that surround them that they are often taken by surprise"
That is a correct qoutatkon
Australia is rich:
John has 0 apples
David has 50 apples.
Each of them eat 25 apples in average!!
Is true or not for Au?!
With an economy based largely on selling real estate and extracting resources from the ground, and with low productivity and low investment in R&D, Australia looks very much like Canada.
The comment abou transparent approval processes and no corruption is demonstrably false. Australia has an extremely opaque lobbying industry and continues to sneak in approvals for mineral projects despite a commitment to reduce emissions. Even though we might not be flagrantly corrupt in the same way as developing nations the pocket padding of politicians and their interests on both sides of the two major parties is still there.
Hopefully we’ll mature as a nation to reap the benefits of our natural resources and avoid pointless posturing.
@@HeiseSayswe already have and continue to do so.
It’s thanks to those minerals you’ve got the way of life in Australia that you do
Not true. Labor’s support for gas was part of their election platform.
What? Your talking down corruption. Mate you have no idea what's going on then. Not as corrupt as developing nations?? Australia is far more corrupt. Yes there' regulations and government agencies to enforce them, but tell me a single case that actually mattered and made a difference? The recent ACCC sandal underpins how corrupt Australia is. Anz bought Suncorp's banking arm, even though the ACCC blocked the deal initially. The acting treasurer overturned the ACCC decision? The case they made was very strong too. It was in direct breach of anti-competition laws mate. Explain that one please?
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"Every time a kiwi emigrates to Aussie the IQ of both countries goes up." Rob Muldoon NZ PM. It's the age old problem: good times makes men weak in the head.
Electrican makes $AUD 56/hour. Pharmacist makes $AUD 50/hour. Don't waste your time with an education & HECs (student loan) debt in Australia
All I see pharmacists doing is printing out paper, going to the shelf and handing over a drug in a white coat.
@@chopsmith4712 So if the doctor writes your prescription for paxlovid and you're on amiodarone. I hope your white coat pharmacist just hands you the medication.
@@chopsmith4712 If your doctor writes you a script for Paxlovid whilst you're on Amiodarone. I hope your white coat pharmacist just hands you the medication.
@@chopsmith4712 If your doctor writes your a script for ciprofloxacin whilst you're on Amiodarone. I hope your white coat pharmacist just hands you the medication.
@@woox200sx Pharmacist job sounds ripe for replacement by an AI. Can catch conflicts in meds, can read, process and generate paper work, can probably even read doctors hand writing better ;D. Bots can fetch and package meds...
The funny thing about Australia is that a lot of university educated people Want to live here. So we end up with lots of engineers from developing countries managing products which are then made in said developing countries. The manufacturing doesn’t count as Australian according to economic statistics but the knowledge is here.
Lies again? American Education Harvard University
its just college students regurgitating textbook knowledge that is already available everywhere in the world, but if u ask if australia can actually make or build anything, it is clear even from their automobile industry back in the 60s 70s and 80s....that its tragically a resounding NO.
The tragedy is that governments in developing countries can't get their business together so the frustration of living in those kinds of societies just puts off educated students into emigrating...... but those countries they migrate to aren't really all that, just more organised.
so you get brain drain in one country, pro-skilled immigrant policies in another country and then eventually immigration restriction policies when too many people want to go.
what do you think should be done?
@@Ashystar067 have more babies.
@@jeetlahkar894 There are massive social issues preventing this.
Be Smart. Be organized. Be lucky like Australia. - Econ, 2024.
Excellent summary and here's the money quote: "Australia's entire economic strategy hinges on just two things: selling houses and extracting resources from the ground". Yip, and the politicians don't seems to want to mess with this 'sound' strategy, seeing as it has worked well enough so far. They'd rather wait until it fails and blame the other party and literally anyone else before setting about doing anything to change it.
I came here in 2004, had a good run for 12 years, house, and small business tied to the resource sector. I'm done here. The lovely charismatic identity of the people is vanishing with this mad immigration. I know how a massive people problem looks like from europe. I didnt expect that this happens here in just 20 years. Incomes and opportunities have stagnated for too long.
Each successive government seems determined to ride our once in a lifetime opportunity into the ground with nothing real to show for it but massively overinflated housing prices. The "lucky country" was a poke at how we've been successful so far despite some very questionable economic management.
Can't disagree with anything has been said considering i have lived my whole life in Sydney. People say Australia is a fair and equal opportunity country but they never mention how corrupt the Australian government is at all levels of government. Probably the worse governments in the world that has exploited the countries resources for decades so they can fill up their offshore bank accounts.
I will say this again and again: Australia is a country with Third-world political dynamics and First-world standards of living.
I have no doubt that Future generations will be paying for the crony policies of Past governments.
Australia has this real bad case of tall poppy syndrome which we use as a means of keeping eachother humble/grounded, but the truth is in many ways it stifles our innovation and often see's our best minds immigrate to the USA or Europe where there are more opportunities. It exists within every industry... no doubt
Exactly
And over weighed by the tall poppy syndrome mostly owing more than they actually own....hence the governments Trillion dollar debt.
Australia is good country 🎉
We should proud of that
We should help each other in society
Australian universities are more interested in DEI than developing technologies and combined with a poor entrepreneurial culture it is not surprising that Australia has fallen behind after advanced economies.
Its not "DEI" 🙄🙄 its creating a new industry by taking money from rich iinternationals that want prestige
@ashmd4537 It is legal in Australia to advertise academic jobs and exclude people based on sex and ethnicity from applying (it is always white men being excluded). This is now common practice. The biggest public funder now approportions 50% of grants to women regardless of the number who apply all the quality of grants compared to those from men. DEI- Didn't Earn It, and in this case the long term effects on the quality of Australian academia will be disastrous.
@@davidlea-smith4747- DEI is basically just an anti-WM policy.
Prior to 1975 Australia manufactured everything required and exported excess.
Then the government signed us up to the Lima agreement and the downward spiral began thanks to the U.N.
People are all talk until they compare prices in Bunnings.
Australians were paying AAA prices for B grade products because of Union protectionism and Gov't subsidies.
@@HeiseSays That I can't deny, all I'm saying is we once made affordable, quality products.
You had the greatest immigration policy in the West until the 70s.
@@HeiseSays nailed it.
I think Australia has one silenced problem - she's an extension of Western Europe just like the Americas. However, whereas the Americas are an ocean away from Europe, Australia is 2 oceans and 2 continents away. The fact that, with the exception of New Zealand, all her neighbours are poor doesn't help either.
We will have some problems when china goes into a recession.
i think China literally carried her economy for the last 20 years.if u looked at the graph of her gdp growth, it rose steadily throughout the 20th century, but the minute China truly opened up and joined the WTO in 2001, australia's gdp curve along with the rise of china went parabolic. australia exports more than 100 billion in resources a year to china and is one of the only handful of countries in the world with a trade surplus with China, not to mention half the students fueling her 36 billion a year education industry is made up of China students and all that chinese money pouring into Australia real estate the last 15 years.....
australia is more or less a vassal of China, that is when shes not a vassal of US.
Not a vassal of China as a vassal does everything the lord tells it to do. In fact China tried to destroy Australia by imposing trade tariffs on Australian exports when Australia called for a covid investigation but China did not impose sanctions on Australian iron ore and in the end it was China who came back to Australia desperate for Australian coal.
This is definitely a factor, Australia is part of the western world but on the other side of the globe
@@robertruggiero9999 considering how crucial china was to australia's economic prosperity, not just prosperity, her stratospheric growth and success in the 21st century whether or not the ordinary australian people understood or grasp the extend of it, while america did practically nothing at all except demand her to participate in some ridiculous 64 billion submarine deal in a show of "solidarity".....i mean CHina is literally australia's largest trading partner at nearly 299 billion USD while america is barely 78 billion...and in australia's media china is painted and portrayed as this bogeyman and enemy of the state or even pinko commies like where do people come off? where do u find such politicians lmao.
and when people get angry and retaliate after much constraint for u to pretend to be the victim and being "bullied" i cant imagine in any other universe or reality would anyone even dare to treat their biggest benefactor with such an attitude......
hey u could at least be a man or country of principle and values and just say no to everything if u dont want China's money, 300 billion in trade plus all those billions chinese dumps in australian "education" racket and real estate......no need to be a hypocrite just for money.
oh well cant blame them, australians are anglo saxons after all.....UK US and australia......would u expect them not to?although australia i would say is not as bad as UK and US together....
and well i also understand the anxieties when some other country or people especially that is not of ur kind starts playing a more and more prominent role and greater influence in economics and global politics....although u people seem to have no problem when the world and countries like singapore or Japan subjugated or submitted themselves to the west.....
humans will be humans
seeing how quickly australia was to fall in lock step with america playing the piped piper in this campaign of anti china sentiments and hate and vitrol....
I live in Australia and the advertisement after the video was from a real estate agency.
What about the fact we can’t afford anything nowdays, the price of food and houses are fast surpassing our wages but work places can’t afford to pay us more, which is an imbalance. Most of us are becoming poorer , the numbers of money doesn’t actually go to most of us anymore but even taking away , so we are becoming poorer
Speak for yourself. Maybe live within your means or earn more.
@@futureoutfit don't be a dunce. Money is being funnelled up to the ultra wealthy, in every country.
I can atest about dumb, particularly with how part of the country reacted to Covid.
I keep telling people that we are VERY lucky here, being that at bottom of the world away from EVERYONE, but somehow still have a decent economy and not smacked by the resource curse.
The mining boom could have set us up for ages if had a wealth/sovereign fund like Norway. Sadly due to the LNP governments the time it never happened. And when Labor tried it they messaged it so poorly, the conservatives were able to swing public opinion against the idea.
Our (The Australian) mindset just isn't like Norways and we would never think of setting up a wealth fund with our resources because whatever government proposes that would be voted out at the next election. We have so much potential but piss it away.
The super system is a kind of sovereign wealth fund but better because it’s owned by the people. It is now bigger than annual GDP and will be twice that by 2030.
@@FlyxPat Indeed it’s a great system. But despite either side of politics, Australia has an expected level of socialist coverage. We have an expectation of a level of government services and support. That fund could have been a hedge against market and economic volatility, as we see now which has cause super growth flatten.
Had an idea which UK labour is now actually doing, when government is seed funding to spin up investment in new, or revived old and needed industries. That fund would of been great for stuff like that
@@TheMelbournelad - it is a capital fund for the nation. i'm in favour of using it instead of interest rates to damp demand - at least the money would go into people's super funds instead of banks' pockets.
@@TheMelbournelad You do realize that Australia has a sovereign wealth fund called the Future Fund? It was established in 2004 under the LNP Howard government, using money from government surpluses obtained from the mining boom and from selling off state assets like Telstra. According to Wikipedia, It's main purpose is to strengthen the Australian Government's long-term financial position by making provision for unfunded superannuation liabilities for politicians and other public servants that will become payable during a period when an ageing population is likely to place significant pressure on the Commonwealth's finances. It now has $281.5 billion in assets under management. Maybe you should do some research before commenting.
Lets be honest, if it wasn't for Asians migrating here, us Aussies would score lower in productivity, entrepreneurship and academically. One huge issue is that our news isn't free. Most 1st world countries have free news. Let it be online or tv. In Australia our tv news is full of commercials or garbage sponsored content and our online media are behind paywalls.
As long as Australia remains politically dependent on the US, it's future's going to look bleaker and bleaker. Remember, a great deal of Australia's much vaunted 'luck' depends on its not poking the Chinese panda in the eyes.
What does the US have to do with anything. This is a failure of Australias own making.
we poke and they block our trade, then a couple of years later unblock it. So we had the last laugh
What does America have to do with this? The sad state of affairs is Australians own doing.
@@teamtoken china supporter havin a dig, nothing new
The US is a minor problem compared to China.
What you're suggesting is counterintuitive. Australia needs to reduce Chinese migration and real estate investment and reduce its economic dependence on China.
As manufacturing diversifies across more countries, China's share will decrease. Other countries will become bigger customers of Australian natural resources.
Im 28, live in Perth WA and thank god im in the mining industry. I can afford to invest in US stocks and at least ill be ok. Gen z here is screwed though. Unless they have major wealth passed down or manage to get a job with a competitive salary.
@@willchongwei what US stocks?
I’ve got in S&P500 and it’s done well. I missed Nvidia though. Thought about it back in 2019 but didn’t pull the trigger. Dumbest mistake 🤦🏻♂️
@teamtoken I don't want to give personal advice. I can only tell you what I've done. I've DCA'd into companies I understand and think will continue revenue growth. I've done my research, and I'm not concerned about dips in the market.
Semiconductor/Technology are my main holdings.
NVDA
AVGO
TSM
Goog
META
AMZN
PLTR
After that
VISA
MASTERCARD
S&P 500 through IVV ASX
Good luck
Hi, Australian urban development consultant and researcher here. Please note, it is a well researched and documented fact here in Australia that Council and state planning laws are not a key contributer to housing price increases. More prominant issues are labour shortages, underdeveloped building industry and construction material inflation combined with a near complete private developer lead housing market.
Councils are 100% accountable for high price on lands.
@NP-fk4mq When it costs $1,000,000/apartment in construction materials and labour to build townhouses and highrise developments, there aint much that zoning laws can do to help.
Why are you lying about being a urban development consultant when zoning laws have a well established impact on the cost of housing. RBA estimate that zoning restrictions raise the price of the average house in Sydney by 73 per cent above the value of the physical inputs. www.rba.gov.au/publications/rdp/2018/2018-03/full.html#:~:text=We%20estimate%20that%20zoning%20restrictions%20raise%20the%20price%20of%20the,54%20per%20cent%20for%20Perth.
Why is it so much cheaper then to build out in the burbs?
yes!
Who would have thought Aussie Little Brother NZ would be so innovative and send a rocket into space... Since Aussie is very capable of doing that.
Good presentation,but I was surprised the Norway comparison wasnt made.
Aussie here. Two reasons our property prices have gone to the moon:
1. Like Canada, massive growth in rich immigrants. I say that as an immigrant myself and supporter of multiculturalism. The issue is extremely politically charged here.
2. The prime reason: growing Global liquidity. Central banks printing money that finds its way in to assets. This mechanism has exploded in the past decade.
Every expensive city around the world blames local planning laws for rising house prices. That view is missing a trick imho
I would add that property price boom has been fuelled by the stupid investment negative gearing law. It hasnt really encouraged new housing development because you can buy an existing house in a good location once you had some spare money- and the gov incentivises you losing money on that investment to offset your income tax! If the policy was directed to only be available to newly built property- then the number of rental dwellings would have increased more than what they did and there would be less buyers in the market if the yield on the investment was not attractive versus other investments. Research the dutch property bubble that was incentivised by the gov encouraging Dutch property owners to take on more debt. What Aus is a similarly dumb policy imo. Lets see what high interest rates do to that stupid policy!
5:45 "Australia has diversified economy", 9:16 "... Australia's economy lacks both diversification..."
dont expect consistency from a youtuber
Yep, and his take that Australia did well through the GFC because of the mining boom oversimplifies what was the best response in the world.
I think it is valid, there are still some manufacturing facilities in Australia, however, they're being faced out.
@@FatNature You do know that only Australians call the GFC, "the GFC", right?
As an Australian, i think most the stuff in the video is spot on.
the problems I see with Australia's economy is:
1) export, it is slowing down because China's development boom is slowing down. Maybe India will replace China for export of Iron ore and other materials? idk how long this will last, eventually the export rally will slow down.
2) houses/apartments prices are ridiculously high (Sydney is currently ranked 2nd most unaffordable place behind Hongkong, and we are not even a top tier financial center country like Hongkong or US). we are in a weird situation that we need immigrants to fill jobs such as construction to provide housing supply, but more immigrants also drive the demand of housing causes housing to be more unaffordable for Australian. Me earning 100k+ aud, i feel like it takes forever to save up for upfront payment for a mortgage given the rent is high. The boomers who bought their properties early are sitting on loads of equity (rich just get richer)
3)education - we have a lot of international students which they pay crazy amount of tuition fees (good for us), however, this also drive the demand of housing. In addition, I have seen a lot of local Australian complain that some of the international students compete with the locals for jobs after they graduate, which the competition causing the goal post of owning a property even further away.
In conclusion, I do think Australia as of now is one of the best country to live in, even with those problems above. open to discussion, keen to hear everyone's perspective.
Anti immigrant sentiment that is so widespread at the moment is wildly exaggerated and a mere excuse of the politicians to fool uneducated people; housing crisis can be solved by regulating the rampant gig economy in real estate like air bnb.. and by making new houses (not rocket science, is it?)...the current argument in Australia - I want international students' money to fund my hecs and their labour to run my business but I don't want them to stay in a house is an argument that crosses all limits of greed and foolishness.
Big mining companies are profiting, the government is hardly taxing them. Give "Punter's Politics" a follow.
I might raise objection to the part about "getting rich" but dumb i can agree with.
Australia is no different from any Middle East oil country. The only difference is Australia is in the middle of the Pacific. That is it. Selling resources.
As an Aussie who believes in a free economy and has invested mainly in the share market, this dude hit the nail on the head! What we need is a conservative government for three terms to break the hold of the intellectuals and bludging parasites that inhibited any worthwhile legislation!
It's called the lucky country because you must be lucky if you can survive here not because the country itself is lucky.
And I'm sure the largest export is education not mining...
Owning a house lets you exist, not be rich!
It's in the weeds a bit, but the capital gains tax reduction has also been a huge factor in pushing house prices up. It financially makes much more sense to push the price of an existing house up and pay half the tax than if you were to build a new one and sell it.
The structural incentives to force housing prices up while suppressing supply here is an absolutely insane policy.
I left Australia 15 years ago for Dubai. I had no idea I had an employee mindset until moving. Australians don't have the entrepreneurial mindset because the culture isn't there. I knew no one in Australia that though big. Australians identify with the aussoe battler or underdog swag man, this causes a tall poppy syndrome to occur when one tries to stand out. Not only do people look down on them for trying but the individual also faces huge guilt issues when going for success. Australians have mistaken submissiveness for humility. I fantasize about returning home however everytime I go back for holiday i realise it's not for me. It's just so stagnant. Beautiful but stagnant
We are not rich we are poor housing wealth is not rich we are income poor, yeah we have commodities but we get nearly 0 royalties from it. Gas we pay more than most countries even tho we are the 2 or third biggest exporter. This country is rich for the rich not for an average this is a poor country with high asset values not high income we are cash poor. Most are
I can go on and on but believe me this country is a Ponzi scheme and not a rich country. Look at births look at income tax as part of government income look at house prices to income. Look at energy expense against the world. We suck !
Honestly speaking, I don't get impressed when some poor country hits the headlines as being the fastest growing economy and such.
This is because, most of this so called growth is just paper growth with little to no real improvement in an average person's average income and standard of living.
Thanks to rapidly growing population, per capita income shows negligible growth.
Despite reporting high gdp growth, several of these poor countries don't have any improvement in basic amenities and infrastructure, don't have any major reforms Implemented, can't stop brain drain, sees worsening social order, sees increasing corruption, sees increasing income inequality, poor social security and don't have any plans for sustaining the high growth.
Average incomes of the people may increase, but the costs increase faster resulting in negligible improvement in purchasing power or savings. Increase in unexpected costs and weakening currency add further fuel to the fire.
There is no improvement in the quality and variety of products and services, education, healthcare and human capital development either.
A lot of these countries are destined to get stuck in the middle income trap and face resource shortages and climate change effects as well. Some of them are doomed to face some economic crisis as well.
Hence, before getting overhyped about a poor country being the world's fastest growing economy, dig deeper and find out whether these underlying issues are getting solved or not. Mere GDP growth does not make a country developed. It involves solving the underlying problems mentioned above as well. These overly long term economic forcasts by corporates and economic think tanks are ridiculous as well.
For an example, people who lived in the US in the 50s or the UAE in the 80s and 90s know what real growth and development is. This real development is not experienced by people who live in these so called fast growing economies.
Bro started to write an essay
@@Banditxam4man i bet you didn't even read it
Yeah, key economic indicators that are ignored are active GDP growth, HDI growth, quality of life growth, decreased inequality, etc. One cannot just look at GDP for an evaluation, for example Ireland (a tax haven) has one of the highest per capita GDP's but a disproportionate amount of this is inactive GDP, not circulating or exchanging in the domestic market.
wonderful mini essay bud! Thats all true, unfortunately. For a country to have actual improvements, they need a governmental base, some Formation to not only sustain that growth but also to reward its citizens it. And I don't meant just making every service public. This distributions can be found in investments, subsidies, etc
it's quite the other way around. A poor country growing fast dramatically changes ground reality for people. A rich country growing usually comes with a bunch of debates on inequality blah blah blah
I'm Australian. I think you've done a great job of summarising the state of play. It's just incredibly disappointing that we are not adopting smarter strategies.
I am an immigrant in Australia for 15 years and I'm living the dream.
Who is responsible for driving innovation? The citizens, the government, industry? Regardless of which political party you vote for, you want the government to strengthen the economy and increase individual prosperity. Government is responsible for funding science and technology. Government is where the levers are to direct and regulate industry. In Australia, we seem to have a political system ingeniously designed to 'take the easy option' when it comes to making difficult or unpopular decisions, regardless of how those decisions may improve the country.If any facet of our country is in desperate need of innovation, it is our system of governance.
Great video and solid narrative - “Australia is a lucky country, run by half rate people who share its luck”, Donald Horne in his 1964 book ‘The Lucky Country: Australia in the 60s’ - this is the book shown in the first few minutes of this video …and yes, as an Australian who chose to permanently move to the US because our household income of over Au$300,000/yr would have only gotten us a third rate million dollar house and our kids would have only gotten an average education - I agree …Australia is rich (on paper) and dumb, going on dumber 😢 the houses and holes economy is taking its toll …the only dream young Aussies have is to own a house one day and the economy has been stagnating for a decade now. Public services are being de-funded and healthcare quality is fragmenting. Infrastructure isn’t being built/maintained and the state of the country reminds me of South Africa in the 1990s - even crime is going up now.
Talking about Australia without talking about Indonesia or ASEAN for that matter is a flaw
This is a fair summary tbh. You understate the housing problem though - it is catastrophic. Middle-class people in fulltime work are living in their cars because there are either no available rentals, or the greedy investor landlords are raising rents beyond reach. People can't plan a life nor have children if they don't have stable nor fairly priced housing. There have been warnings about lack of skills for decades. Australia's impending dire situation is a symptom - the disease is government after government grasping while in office and not thinking beyond its three-year term. Leaders have failed us.
Sadly this is all true. Our economy is fairly simple and it's difficult to see how we'll compete in the future as we don't actually do or offer that much. We had a lucky 30-40 years but we'll most likely stagnate from here.
Only certain people benefited from the mining boom, and it wasn’t average people
This is silly. Australias third largest export is education to international students. It even said the economy was diversified then the opposite later in the video.
It’s a poor video, simplistic at best.
its fourth
www.education.gov.au/international-education-data-and-research/education-export-income-financial-year
The economy is way less diversified than it was 30 years ago. AND why are so many smelters being shut down?
The very last line did it for me.
"A serious vision on the future". This is not only missing in Australia but also in my country, the Netherlands.
What mining is for Australia is export and import for the Netherlands..... With the declining economy in Germany we will soon have a big issue as well.
Apart from that, we have a number of looming problems. The general population here don't see or don't want to see it but that does not mean that these problems are not there.
Heere in the Netherlands the population is literally getting dumber. This is mainly due to influx of people from countries where education is on a lower level and because the quality of education here in the Netherlands has been on the decline for many years.
Like in Australia, real estate is seen as a form of wealth but what people do not realize is that the house that they live in is in fact a liability (with one exception).
Thank you for this short, compact and concise insight.
Vancouver BC and all of Canada are very similar: everything based on immigration & natural resources, lots of red tape and mediocrity but not the outright corruption of the 3rd world. It does infuriate me that our provincial government takes away our property rights to encourage more housing, but does nothing to improve zoning & reduce red tape. I'm pretty sure it's the same Down Under. PS: great videos on YT about how building code changes can totally revolutionize apartment buildings & double housing.
An excellent video and spot on , as an older Australian I have been saying for years our stupid politicians have run the country down into the ground and squandered its wealth.
Even our manufacturing industry our stupid politicians sacrificed over the decades to become “ a trading nation” for short term gain .
A lot of our industry that supported engineers and a wealth of skills were thrown out with the bath water to become a trading nation favouring imports.
This is the problem when you have a relatively wealthy country with leaders that have less intelligence than trained monkeys .
Albanese and his minions are in a club of politicians that have been lack lustre and let the population down.
Bring on the next election.
I don't think it's fair blaming skilled labour for low productivity. As an Australian, I think it comes down to the difficulty in capital raising and up front costs (not just in labour, but energy, insurance and taxation). Also Australia income tax punishes upper middle income ppl too early. I know for a fact I could earn more money - I choose not to and spend more time with the family. Why work more when you would see 37c to the dollar lost and stupid levies kick in a $120k AUD ($80k USD) p yr.
Businesses are extremely risk averse, though, which stifles innovation.
Some points you overlooked include Australia's strong and in many Ag industries, world leading producers. True that these industries are restrained by the urbane folies you described.
However, as a technology leader in this sector, with good resource management and an excellent capacity to grow, Australia can (and I hope), will recover from the Canadian disease you have described
I have recently returned to australia after more than 2 decades overseas. The house prices here are ridiculous, especially in Sydney. Glad im set up overseas for retirement as im not going to be staying here permanently. I totally agree with the video ending that there is no clear plan for australia's future and any plan that private sector has gets virtually no support from the govt. With so much land couldnt aust be a green energy exporter using high voltage dc submarine cables. But with no support from the govt and only private sector funding. It just wont happen.
You are fairly close, however education (universities) are like our 3rd largest export by value. And 2/3 of people work in the service industry (especially finance etc). Yes we're too reliant on housing, china, and mining. But not as much as you made it out to be
Tourism is equal to the iron ore exports.
@@HeiseSays It's not competitive with cheaper Pacific Islands like Fiji and Taihiti. And Cairns and Dunk Island are cyclone prone
High wages mean Australia will never be globally competitive in high volume manufacturing. Australia does have a number of low volume / high complexity exporters in the defence and medical industries. In terms of farming, it’s only the highly industrialised low wage input farming where Australia is successful, wheat, barley, sugar, live cattle, sheep, etc. Farming with high labour input such as fruit is only for domestic consumption.
Who remembers those merry go rounds that as children we climbed on and spun until those on the inside stayed on and those on the edge fell off? Well, you better make sure you are frugal and stay off the edge because a lot who are not are going to get flung off real quick real soon 😢
That first chart at 0:38 is almost certainly showing mean wealth, not median wealth.
My daughter and son-in-law returned home after failing to fund reasonable jobs in Australia. They did very well in a top Australia university but had no future there.
What did they study if I may ask?
👏 👏 👏 This was a great video, really balanced reporting, and a flawless analysis.
Spot on mate love your work keep it up! 😊
Australia may be rich but majority of its people are suffering on most levels. Australia needs to bring back manufacturing.
Im punjabi, nice to meet you
Major problem with many wealthy countries is their immigration business model is not only not working but also become a liability. Because the world is moving rapidly towards AI.
The wealthy countries have neglected the middle class and upper middle class. And having a strong union and constant strikes... well no entrepreneur want this headache with unproductive workers.
The west have a headstart in engineering and creative inventions. Being a pioneer is great. Being a fast-follower is also very lucrative 🤑
Australia got rich off of resources. No manufacturing sector to speak of. Culture wise its the 51st American state. Australia has so much potential yet its current inhabitants squandder it all. I hope once the Indians and Chinese are the majority, they'll make Australia unlock its full potential.
Sure, make it like Canada. Canada is so screwed.
Wdym culture wise?
When you actually look it up, Australia has very limited sovereignty
@@legitplayin6977 Very true!! People will understand why very soon.
@@sociolocomtsac lol Canada is s#it hole not because of Indians or Chinese, its because of illegal immigrants that Canada welcomes from middle east and Africa.
To be honest Canada wouldn't have had so many new startups and business activities if Indians and Chinese weren't living in Canada
I'm a millennial Australian. This is a perfect description of my experience.
We used to make things...... Australia 's manufacturing sector and thus our production capability was decimated after the federal government signed us up to the "Lima Declaration" without any public consultation in the 1970's. We agreed to wind down 30% of our production and to import it from overseas instead. This included primary produce like meat and fruit etc... The 30% disastrously blew out to a whopping 90% of production capacity gone....
Many in Australia have been getting poorer because the price for basic things like housing and groceries has inflated so much